An informal employee assessment takes place when an employee needs positive or constructive feedback, not necessarily at regularly scheduled intervals, as is the case with formal evaluations. Some company leaders view an informal review as a better way to create ongoing feedback and communication with employees. However, they can stifle employee creativity and become ineffective if poorly implemented.

Immediate Reinforcement

One driver of informal assessments is the benefit of immediate reinforcement. When managers place too much emphasis on formal appraisal processes, they may neglect to routinely react when employees do something positive. If an employee effectively services a customer, immediate praise strengthens her belief that good service is important and recognized. Also, if a manager spots an employee making a mistake or inappropriate decision, it is better to address it promptly to avoid passive approval.

Constant Interaction

Informal assessments create constant interaction between a supervisor and employee. Managers can routinely check on an employee's concerns and offer any needed coaching or training. The employee will also likely view the manager as more approachable when problems arise. The regular interaction enables the supervisor and employee to work together to deal with internal or external problems as they come up, rather than trying to tackle many problems at once in a formal setting.

Too Much Input

Informal evaluations aren't foolproof. One potential risk of constant feedback is that an employee who feels like he is being watched constantly could feel stifled or demotivated. A manager needs to guard against the urge to step in and micromanage an employee's activities. Instead, the manager should train and coach effectively and rely on the employee to approach him when needed. Assessments should be frequent enough for ongoing interaction, but not so excessive that they frustrate and embarrass an employee.

Lack of Seriousness

The line between informal and inadequate evaluations can get blurred, depending on a manager's approach. Employees may not take informal appraisals seriously if they are too informal or limited. With formal, periodic evaluations, employees understand they are being assessed and often prepare thoughts and questions in advance. Managers can encourage employees to prepare facts or evidence of their work in advance of an informal get-together.